Crypto Winter Hits Bitcoin, $200 Billion in Crypto Assets Evaporate

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Bitcoin has fallen more than 10% in the past day to around $36,300 on the FTX exchange, throwing the crypto market into a sea of ​​red.

Although the crypto market has lost nearly $200 billion in market value since yesterday, Crypto Twitter is not losing its collective spirit as Bitcoin’s dominance is at 40.84%, up 0.65% from see you yesterday.

Global investors appear to have entered the year with reduced risk appetite, and thus correlations between speculative assets like cryptoassets and equities have increased, leading to widespread losses.

The day’s liquidations amounted to approximately 221,382 investors. On Bitmex, the largest liquidation order was for XBTUSD worth $9.31 million.

The S&P 500 index is down about 7% from its peak, while the Nasdaq 100 index is down 10%. Bitcoin is down about 45% from its all-time high of nearly $69,000.

Bitcoin’s risk profile was higher than that of altcoins, leading to their decline on Friday.

In terms of market capitalization, Ethereum, the second largest cryptocurrency in the world, fell around 13% in the past 24 hours, while AVAX and FTM fell 14% and 16%, respectively.

Analysts still expect a short-term rebound despite the losses. BTC is expected to find a supply near the $35,000 mark, nearly 50% off the top.

The market may rebound to challenge the $40,000-$45,000 area in the near term, but as long as liquidity remains tight, the outlook is bearish.

Right now, technical indicators suggest Bitcoin’s near support level is $35,000, although a stronger support level at $30,000 could stabilize a deeper correction.

It is imperative that bitcoin maintains its support as it sets the tone for the cryptocurrency market. Many altcoins are trading at their summer 2021 lows, which makes Bitcoin crucial.

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